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Home / Manawatu Guardian

Enduring powers of attorney: who can act for you?

By Merania Karauria
Manawatu Guardian·
21 Jun, 2020 10:54 PM3 mins to read

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Palmerston North senior solicitor Richard Small.

Palmerston North senior solicitor Richard Small.

As they get older, many New Zealanders begin to think about who they would want to make decisions for them about their finances and medical care, if they were unable to make those decisions for themselves.

This is where enduring powers of attorney become relevant.

A power of attorney is a document whereby you, the donor, appoint someone (your attorney) to make decisions on your behalf or sign documents for you.

A donor can choose two different kinds of attorney; one for your property and finances, and another attorney for your personal care and welfare.

You can appoint the same person to be your attorney for both, and indeed it is common for spouses to appoint each other as their attorney for all matters.

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When you appoint a property attorney, you can select more than one person, and elect whether multiple attorneys can each act individually or whether they must make decisions together.

Alternatively, you can choose to have just one property attorney.

You can elect whether your property attorney(s) can act while you still have mental capacity, which is useful if you travel overseas often for example, or otherwise only once the court or a medical practitioner has certified that you have lost the capacity to handle your own affairs.

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Conversely, you can only have one attorney at a time for your personal care and welfare decisions.

Your "medical" attorney will only be called upon to exercise their powers if you lose mental capacity to make decisions about your own care.

If the decision your attorney has to make concerns a significant matter, such as entering into rest home care, then a doctor or the court must first determine that you have lost mental capacity.

An attorney has obligations to keep records, consult with you and anyone else you have specified, and to keep as their paramount consideration the promotion and protection of your best interests.

A common misconception is that your attorney can decide what happens to your property when you die.

A power of attorney automatically ceases when you pass away, and after you die your estate is administered in accordance with your will.

For that reason, it is a good idea to sign a will (if you do not already have one) when you put powers of attorney in place.

That way, you are covered no matter what the future brings.

- Richard Small is a senior solicitor at Jacobs Florentine. The information above is general only and cannot replace specialist advice. The writer accepts no responsibility or liability for reliance on, or use of, this article.

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